A feasibility study is an analysis and evaluation of a proposed project to determine if it is technically viable, economically justified, and will be successful in the intended market. In essence, it helps decision-makers understand the potential benefits and challenges of pursuing a specific initiative, whether it's a new business venture, product launch, infrastructure project, or any other significant undertaking.
Check out these financial feasibility study templates for over 50 industries.
A comprehensive feasibility study generally includes the following components:
Introduction/Project Description: A detailed description of the project, its objectives, and the specific problem or opportunity it aims to address.
Market Feasibility:
- Market Analysis: Assesses the size and growth potential of the target market.
- Competition: Reviews existing competitors and the level of competition in the market.
- Pricing and Revenue Forecast: Provides estimates of potential sales and revenues based on pricing scenarios and market penetration rates.
Technical Feasibility:
- Determines if the project can be implemented with current technology and resources.
- Examines logistical and operational aspects, like location, transportation, and necessary technical equipment.
Financial Feasibility: (all the financial model templates on this site pretty much 150+)
- Capital Requirement: Estimates the amount of initial investment required.
- Projected Income Statement: Estimates revenues, costs, and profits.
- Cash Flow Forecast: Assesses the project's ability to generate positive cash flows.
- Break-Even Analysis: Determines the point at which the project will start generating profits.
- Return on Investment (ROI): Evaluates the potential profitability of the project.
Organizational/Managerial Feasibility:
- Examines the organizational structure required for the project.
- Assesses whether the existing managerial team has the necessary skills and experience.
- Identifies potential risks and challenges and proposes strategies to address them.
Legal Feasibility:
- Assesses whether the project adheres to local, state, or national regulations and standards.
- Identifies potential legal barriers or challenges.
Environmental/Social Feasibility:
- Evaluates the environmental impact of the project and potential implications.
- Assesses social implications, including community acceptance and potential benefits or disadvantages to local stakeholders.
Timeline: Outlines the expected duration for each phase of the project, from inception to completion.
Conclusions and Recommendations: Based on the gathered data, this section provides a clear recommendation on whether to proceed with the project, modify it, or abandon it. The study also highlights critical success factors and potential risks.
Feasibility studies are pivotal in making informed decisions about the viability of projects. They help stakeholders anticipate potential challenges and devise strategies to address them, reducing risks and ensuring better chances of success.
If you want all the templates on this site, I offer them in one large bundle, called The Super Smart Bundle.
